Cryptocurrency collapse is coming!. Hello everyone, welcome back. Next… | Costa Martinez | Coins | January 2024

Hello everyone, welcome back. Following the much-anticipated approval of the Bitcoin ETF, it unfortunately developed into a “news selling” event. Bitcoin, which initially surged towards $50,000, lost momentum and suffered a significant decline, further influenced by the latest Consumer Price Index (CPI).

The looming question now is what lies ahead. Will Bitcoin and altcoins experience a prolonged sideways movement, or could we see another downtrend? In this article, we explore post-drop strategies, examine key technical support levels, and discuss the evolving investment landscape in the post-ETF environment.

Experiencing significant declines in our portfolio is never pleasant. Bitcoin endured a 15% drop, with altcoins often hit harder. In times of heightened fear, uncertainty, and doubt (FUD), it’s important to use effective strategies.

It is important to regain perspective during corrections. I outlined a series of mindset techniques in my 2024 Playbook, highlighting the cyclical nature of large gains, FOMO, overbought conditions, corrections, and influx of opinion on social media. The recent approval of the Bitcoin ETF has sparked a significant rally, including some FOMO, and I personally have been redistributing my spare cash into the market to seize the opportunity. However, this ETF launch turned out to be a classic case of ‘buy on the rumor, sell on the news’, and a recent correction occurred.

To navigate uncertainty, it is important to change perspective by examining long-term charts. The inherent volatility of cryptocurrencies can make short-term analysis misleading, and switching to a 3- or 6-month view often provides a more accurate explanation. Comparing recent declines to historical patterns shows that declines of 10-15% are common.